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Indian economy fundamentally relies upon two areas, agriculture and manufacturing. While the first has generally stayed unorganized since the start, the last also has not been so till now. The MSME area has gradually come into the spotlight, with expanded concentration from the public authority and other government organizations, corporate bodies and banks.
Strategy based changes; interests in the area; globalization and India's powerful monetary development have started up a few inactive business openings for this area.
MSME represents Micro, Small, and Medium Enterprises. As per the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, the ventures are arranged into two divisions.
In the modified definition, both the manufacturing and the service sector are grouped together.
Micro:
Manufacturing and Service Industries – Investment ought to be under 1 Crore and Turnover ought to be under 5 Crore.
Small:
Manufacturing and Service Industries – Investment ought to be more than 1 Crore and under 10 Crore. Though, Turnover ought to be more than 5 Crore and under 50 Crore.
Medium:
Manufacturing and Service Industries – Investment ought to be more prominent than 10 Crore and under 20 Crore. Though, Turnover ought to be more than 50 Crore and under 100 Crore.
1. Collateral Free Loans
Collateral free loans for organizations has been arranged including MSMEs and emergency credit line to organizations/MSMEs from banks and NBFCs up to 20 per cent of whole extraordinary credit.
2. Equity imbuement of Rs. 50,000 crores for MSMEs via a Fund of Funds
The Government has additionally declared the proposed foundation of a Fund of Funds is proposed to be set up with a corpus of Rs. 10,000 crores and will be worked through a 'Mother Fund' and a couple of daughter funds, through which it expects to use Rs. 50,000 crores of assets. That will straightforwardly put resources into MSMEs and urge them to list on the Indian stock trades.
3. Interest subvention
An interest subvention will be reached out to every one of those brief payees who are making normal installments for a year. Has likewise been declared under Mudra Scheme's Shishu Cover whereby a 2 per cent interest to aid will be permitted on credits up to INR 50,000.
4. Postponement of registration and completion date of real estate projects under RERA
During the underlying days of the lockdown, the Ministry of Finance had assigned the COVID-19 pandemic as a power Majeure occasion under RERA and consequently extended the project completion cutoff times by a time of a half-year.
5. Rs 20 crore subordinated debt for MSMEs
MSMEs ministry has introduced the Credit Guarantee Scheme for Subordinate Debt (CGSSD) which is called 'Distressed Assets Fund–Subordinate Debt for MSMEs'
(i) Promoters of MSMEs will be given credit equivalent to 15% of their stake (e+d) or Rs. 75 lakhs, whichever is lower.
(ii) A moratorium of 7 years on principal payment while maximum extreme tenure for repayment will be 10 years.
(iii) 90% assurance cover for this subordinate debt will be given under the plan/trust and 10% would come from the concerned advertisers.
6. Directions to Public Sector Undertakings to make timely payments
Bearings have been given by the Cabinet Secretary, Expenditure Secretary and Secretary, MSME to all PSUs to take care of remarkable obligations to MSMEs within the time span of 45 days.
7. Extension of the due date for ITR for FY’19-20 to November 30, 2020
As declared by the public authority in a question and answer session, the due date for all income tax returns (ITR) for FY 2019-20 has been stretched out from July 31, 2020, and October 31, 2020, to November 30, 2020, and for the tax audit from September 30, 2020, to October 31 2020
8. ECLG scheme
The ECLG Scheme would apply to all advances authorized or made accessible to MSMEs between 23 May 2020 and 31 October 2020 and the Government has as of now put a general cap of Rs. 3 lakh crores for all credits dispensed under the ECLG Scheme.
9. Measures identifying with the Insolvency and Bankruptcy Code
This alteration will probably profit MSMEs that are under monetary misery because of the financial emergency brought about by COVID-19. The Government on 24 March 2020 expanded the base edge for default from Rs.1 lakh to Rs.1 crore to start the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 (IBC).
10. Import protection
In a line towards confident India or backing make in India and will likewise assist MSMEs with extending their business. For this, worldwide tenders have been refused in Government acquirement tenders up to INR 200 crore because Indian MSMEs and different organizations have regularly confronted unjustifiable rivalry from foreign organizations.
ब्रेंट कच्चे तेल की कीमतें 65 डॉलर प्रति बैरल के ऊपर पहुंच गई है लेकिन 68 डॉलर के महत्वपूर्ण प्रतिरोध स्तरों पर है। इस सप्ताह गुरुवार को, पेट्रोलियम निर्यातक देशों और सहयोगियों (ओपेक) की बैठक पर निवेशको की नज़र रहेगी जिसके पहले अन्य बाज़ारो पर दबाव देखा गया है।
कच्चे तेल की कीमतों मे लगातार सुधार होने के कारण, ओपेक और सहयोगी देशो के निर्णय पर बाज़ारों की निगाहें होगी। अधिक आपूर्ति होने से सऊदी अरब ने पिछली बैठक मे अतिरिक्त उत्पादन कटौती पर समझौता किया था। जबकि अन्य तेल निर्यातक देशो ने आपूर्ति को स्थिर रखने पर जोर दिया था। वही रूस उत्पादन मे वृद्धि के पक्ष मे रहा है।
अमेरिकी प्रान्त टेक्सास और आसपास के क्षेत्रों में पिछले सप्ताह की ठंड के कारण 40 लाख बैरल प्रति दिन कच्चे तेल की आपूर्ति बाधित हुई है। जिससे कच्चे तेल की कीमतों में मजबूती है और इस महीने मे ब्रेंट तथा अमेरिकी कच्चे तेल मे 20 प्रतिशत की बढ़त दर्ज की गई है। वैश्विक तेल स्टॉक मे लगातार कमी दर्ज की गई है लेकिन, मौसम के कारण बाधित होने वाले कच्चे तेल उत्पादन में लाखों बैरल की कमी धीरे-धीरे पूरी हो रही है। बांड बाजार टूटने से डॉलर मे तेज़ी होने की सम्भावना है और ऐसा होने पर कच्चे तेल की आपूर्ति बढ़ सकती है।
इस सप्ताह कच्चे तेल की कीमतों मे अस्थिरता रहने की सम्भावना है।घरेलु वायदा कच्चे तेल के भाव मे 4700 रुपय पर प्रतिरोध और 4200 रुपय पर सपोर्ट है। ब्रेंट वायदा कच्चे तेल मे 67 डॉलर पर प्रतिरोध तथा 62 डॉलर पर सपोर्ट है।
Opening an online trading account is the first step towards becoming a successful investor. Before we begin, decide whether you want to open an account with Swastika through their website or with Swastika via their mobile app. Both options offer user-friendly interfaces and convenient features to make the account opening process seamless.
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Although many people prefer to invest in mutual funds as they find it is one of the finest ways to achieve high returns with minimum risks, only a few investors among them show their courage to invest in equities and stocks.
Needless to say, the stock market is full of volatility, unpredictability and therefore many investors unable to put their money in the stock market. Still, many investors invest in equities and get outstanding returns from stock market trading.
A Demat account is simply a dematerialized account in which you hold a variety of investment securities such as shares, bonds, government securities, equity shares and more. The account is known as dematerialized because all the securities are placed in a dematerialized form.
Opening a Demat account is a must if you want to trade in securities in the stock market. This is because Demat accounts allow you to hold, buy and sell securities within a single account.
Opening a Demat account is important as it provides a digitally secure and convenient way of holding securities and shares instead of a physical one.
Also, it removes theft, loss and damage of physical certificates. Before the 90's when there were no Demat accounts, shares were traded in a physical form. And needless to say, physical shares were difficult to store and maintain. There was always a risk of being misplaced, damaged or stolen.
You can’t trade if you don't have a Demat account. Since everything is done electronically, having a Demat account allows investors to hold the paperless securities without a flick of a switch.
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The recent updates in the budget 2021-22 have brought the spotlight back on the government's privatization plans.
In the budgetary speech which was held on Feb 1, 2021, India’s finance minister Nirmala Sitaraman announced to sell its whole stake in IDBI bank - of 46.5% of the bank’s capital - to private retail and institutional investors through a stock exchange.
Also, the government is planning to sell a part of its holdings in Life Insurance Corp, India, with an initial public offering for the fiscal year starting on April 1, said Tuhin Kanta Pandey, Secretory for Disinvestment. According to livemint, this will require specific legislative action. LIC is 100% state-owned.
According to a report, LIC comes with a size of USD 434 billion, holding more than all Indian mutual funds combined.
Currently, LIC has a market share of 76.28% of policies and 71% in first-year premiums according to Business Insider.
The market reacted positively to the budgetary announcement and due to that, the shares of public sector banks rose to 3 per cent while Nifty PSU Bank Index went up by 3 per cent. On the same day, the BSE PSU Index rose 4.5% making it its best performance for the last 10 days post-budget announcement.
The government has also notified its intentions of holding a minimum number of PSUs in sectors. The announcement also includes a much-awaited IPO which would be brought in the current FY 2021-22. Here, the primary objective of the government is to gain Rs 90,000 Crore from LIC listing with the dilution of stakes in IDBI bank.
Finance Minister Nirmala Sitaraman also highlighted the importance of having a Public sector enterprise policy and said that the policy would be divided into two major areas: strategies and non-strategic. The government also has mentioned that the new PSE policy does not apply to the PSEs which are non-profit or related to development.
Primary government departments such as the Airport Authority of India, key port trusts and posts cannot be considered as a part of PSU privatization. Other major sectors such as space, defence, atomic energy, petroleum, transport and telecom, power, coal, minerals, financial services are some of the sectors that will be considered for privatization.
As a result, the government has started to lower the number of PSEs in India to 25 from 300 plus.
BSE Sensex is all set to mark a presence of 55000 towards the end of 2021, Morgan Stanly analysts said. The primary reason behind the scaling of Sensex points is the government's plan of divestment of some PSB, privatization and LIC IPO.
The analysts further said, if all the procedures of privatization are implemented well, then there is a strong chance for India to recover its domestic equity flows and prosper its earnings growth. The announcement will also help India’s equity trading to reach a new height and catch up with emerging markets via the stock market’s performance.
The increment of current liquidity in the stock market will encourage the government's plan of divesting its stake in certain firms. As more PSUs get divestment push, the value of these firms will be unlocked. Keeping in mind, the RBI monetary policy has ensured that the low-interest rates are maintained yet the liquidity levels remain high.
Foreign Institutional Investment is currently keeping an eye on India and FIIs bought shares worth Rs 1.7 lakh crore in 2020 and raised stake quarter in over 400 companies in December, according to the news reports.
Ever since the budget was announced, FIIs have turned to net buyers in the equity markets. Between Feb 1 to Feb 5, FIIs have invested a net of Rs 10,793 crore in equities which has ensured that the markets have been buoyant.
Nowadays the government seems to attract more overseas buyers which in turn makes more privatization of the firms. This means that these firms can attract foreign investment. The stock market trading will only encourage the opportunities that disinvestment will bring, as it helps in expanding a broadened capital market with upgraded listings and market size.
India’s overall privatization goals for 2020/2021 will get doubled to INR 2.1 trillion. This has made the government fail to meet its overall deficit goals.
According to the news reports, before privatization, the previous targets have not been met. In the current fiscal year, only one-quarter of the target was raised.
In the reports shared by ET, the 2019-20 financial year deficit is projected at 3.8% of GDP versus 3.3% previously projected, before falling to 3.5% in fiscal 2021.
Government divest their stakes in PSUs so that it can raise funds for infrastructure projects reducing debts or narrowing fiscal deficits. Infrastructure projects such as roads or ports will not only boost economic activities but also enhance the productivity and transparency of said enterprises by bringing in private interest.
The Reserve Bank of India’s (RBI) monetary policy left the repo rate unchanged at 4% in its monetary policy committee while maintaining an accommodative stance, RBI governor Shaktikanta Das announced-on Friday. The governor further decided to maintain the repo rate amid a sticky rate of inflation. The reverse repo rate also remained unchanged at 3.35%.
The repo rate has remained at 4% since August 2020 during the MPC meeting. RBI governor Mr Shaktikanta Das announced-on Friday that the decision was taken unanimously in favor of him. The MPC meeting was conducted between 3 to 5 Feb where the panel was headed by Mr Shaktikanta Das along with the other members Dr Ashima Goyal, Dr Shashank Bhide, Prof. Jayant R. Verma, Dr Michael Debabrata Patra and Dr Mridul K. Saggar.
The repo rate has remained unchanged while maintaining an accommodative stance for this FY to next FY as long as necessary, RBI governor Shaktikanta Das announced-on Friday.
In late March 2020, the central bank had slashed the repo rate by 115 basis points to support growth. This is the 4 time in a row that the MPC decided to keep the policy rate unchanged as the RBI had revised its policy rate on May 22 to increase the demand by minimizing the interest rate to a historic low.
This is the first MPC meeting after the arrival of Union Budget 2021-2022.
An accommodative stance means there is room for reducing the interest rates in the future to revive economic growth. That’s why MPC has decided to continue with the stance from the current FY 2021 to next FY 2022 to revive growth to minimize the impact of COVID 19 on the economy.
Even if the central government and central bank worked together to uplift the economy by providing financial support, the economy still has to take a long time from the Covid 19 impact with rising cases.
Therefore, RBI decided to minimize the interest rate and await inflationary pressure to ease before the economy grows.
The Monetary Policy Committee kept its repo rate unchanged at 4% which means the rate at which banks borrow money from RBI remains as is. Normally, when RBI reduces the repo rate, commercial banks also have to reduce the interest rate and therefore they offer fewer interest rates on loans given to you.
Interest rates have congruence with rising inflation.
Repo Rate:
Repo rate is the rate at which commercial banks borrow money from the apex bank (RBI) by selling their securities to the central bank of our country. RBI uses it as the main tool to keep inflation under control.
Reverse Repo Rate:
Reverse Repo Rate is the rate at which RBI borrows money from other commercial banks. It is a mechanism to absorb the liquidity in the market, whenever there is excess liquidity in the market.
Marginal Standing Facility
MSF is the rate at which banks borrow overnight funds from the RBI. MSF has been created only in case of emergency when interbank liquidity goes down and overnight interest rates are volatile. Here, the rate is higher than the repo rate.
Bank Rate
The bank rate is the rate at which banks lend money to commercial banks that too without any security.
MPC’s Outlook on Growth and Inflation
Inflation:
In December 2020, for the first time in 1 year, the inflation rate had fallen below the RBI mandate band of 2-6%. It is expected that the vegetable prices will remain soft in the near term, while the pressure may continue to persist in many food items, said the MPC.
While the MPC’s outlook on food prices remains favorable, its outlook on core inflation causes depression.
Core inflation excludes unstable factors such as fuel and petrol prices.
Fuel Prices:
The RBI acknowledged the rise in fuel prices. The further increase of fuel price added with huge indirect taxes on the product by both centre and state always remain a cause of concern. This depicts the concerted policy action by both governments to control cost-push pressures.
Considering all the above factors, RBI expects inflation at 5.2% for January to March of the current fiscal year, 5.2-5% between April to September 2021and 4.3% for the third quarter of the next financial year.
Real GDP is a measure of a country’s gross domestic product which has been adjusted for inflation.
The RBI has numerous measures to extend the scope of financial markets. RBI plans to provide retail investors online access to the government financial securities, including primary and secondary directly through Reserve Bank (‘Retail Direct’).
The Company is engaged in the business of manufacturing and marketing a range of agrochemicals. It has a pan-India presence, with integrated operations across research and development, manufacturing, marketing and distribution of a wide range of crop protection chemicals, public health and Animal Health solutions.
The company manufactures technical products (active ingredients), intermediate products and formulations. Company’s products viz Deltamethrin and Alphacypermethrin are now recommended and included in the WHO/FAO specifications. The company has a well-balanced effluent treatment system for the solid, liquid and gaseous effluents and emission generated from the various processes.
Heranba's major focus is on exports. It exports its products to more than 60 countries including Argentina, Belgium, Egypt, Ghana, Indonesia, Jordan, Malaysia, Nicaragua, Philippines, South Africa, Tunisia, Ukraine, Australia, Brazil, Europe, Hamburg, Iran, Kenya, Mexico, Nigeria, Poland, Turkey, Vietnam, Bangkok, China, France, Zimbabwe, Israel, Korea, Pakistan, Saudi Arabia, Taiwan, Uganda, Thailand, UK, Bangladesh, Colombia, Germany, Hongkong, Istanbul, Kyrgyzstan, New Zealand, Peru, Singapore, Middle East. Domestically it caters to the customers all over India with its extensive dealership, stockist network and skilled field sales force.
The company has divided its product portfolio into the following segments:
Risks Relating to Industry
IPO Details:
IPO DateFeb 23, 2021 to Feb 25, 2021Issue TypeBook Built Issue IPOIssue SizeEquity Shares of Rs.10 totaling up to Rs. 625.24 CroreFresh IssueEquity Shares of Rs.10 totaling up to Rs. 60 croreOffer for Sale90,15,000 Equity Shares of Rs.10 totalling up to Rs 565.24Face ValueRs.10 per equity shareIPO PricePer Equity Share: Rs. 626-627Min Order Quantity23Listing AtBSE, NSE
Financial Performance:
Financial Performance (in INR crore) FY2018FY2019FY2020H1 FY2021Revenue750.41011.8967.9619.2Expenses674.1889.7839.1529.1Net income47.075.697.466.3Net margin (%)6.37.510.110.7
Tentative Time Table:
Gujarat-based Heranba Industries is one of the leading domestic producers of synthetic pyrethroids in India with 3-year CAGR Revenue growth at 9% and 3-year CAGR Net Income growth at 27%. Net income from operations has grown by 28% between FY19 to FY20.
At an upper price band of INR 627 and EPS of 25.03 for the FY20 PE ratio of the company is 25 which is little higher than average PE ratio of 22 of its peer companies however the business model of the peer is slightly different. Thus, we may consider that the IPO is reasonably priced.
The margins of the company are improving in the last three years. The Company has a consistent dividend track record with stable revenue growth. Eyeing the growth of the company as demand for pyrethroids in India and worldwide are going to remain positive during 2020-2025 we may expect the company to have a better performance in the upcoming years.
This February, the Indian government announced the Union budget which is aka the annual budget for the country. Needless to say, a country’s budget comprises a lot of things that may not be applicable to retail investors.
As a responsible investor, understanding the important aspects of budget is very crucial to know the direction in which the economy is moving and expected to move and the industries/sectors that can work better in the future.
Among all the economic terms, you may frequently hear the term called a fiscal deficit. Today, we will try to understand the concept of fiscal deficit.
The fiscal deficit is termed as the total revenue and total expenditure of the government. In other words, it tells us the total borrowings needed by the government. While calculating the total revenue, borrowings are not included.
The gross fiscal deficit (GFD) is the excess of total expenditure over revenue. Also, Deficit means “shortage”.
For the Indian Government, the primary source of revenue is taxes. Revenue of a government includes corporate tax, income tax, GST, and other taxes incurred from time to time. The other sources of revenue are interest income, disinvestment receipts, dividends.
There are numerous expenditures a government has to manage such as revenue payment, interest payments and capital expenditure.
The calculation of the fiscal deficit is as follows:
Fiscal Deficit = (Revenue Expenditure - Revenue Receipts) + Capital Expenditure - (Recovery of loan + other receipts)
Most of the emerging economies around the world including India, run in a fiscal deficit as the government’s expenditure exceeds government revenue. However, sometimes the reverse is possible.
It is important to note that the fiscal deficit does not necessarily mean the country’s economically weak. If the government is spending a lot of capital towards the development of the country such as: constructing airports, highways then the fiscal deficit may be high for that country.
The consequences of the fiscal deficit of a country:
In a country like India, where the government has to take care of many aspects regarding the development of a country, there are times when the country needs to take care of more of a certain section of a society which in turn increases the expenditure. Generally, a fiscal deficit of less than 4% of the GDP is considered a healthy economy.
Whenever there is a deficit or shortfall, the topmost priority of Indian government is to arrange funds so that it can meet its expenditure. In India, the government manages its deficit by borrowing from numerous sources such as RBI, capital market, public sector banks and more.
Needless to say, this global pandemic and its impact were uncommon. Hence, in order to manage the fallout, many experts believe the Indian government needs to resolve the unexpected measures to manage the fiscal deficit too.
India’s fiscal deficit for the current year will be marked as the highest since liberalization in 1991. According to the Finance Minister Nirmala Sitaraman, the country’s fiscal deficit is settled at 9.5% in 2020-2021 and will be targeted at 6.8 in FY 2021-2022.
Earlier, the central government had determined the fiscal deficit at 3.5% for FY21 before the arrival of Covid 19 crisis. The pandemic put double pressure on the government’s balance sheet which in turn saw a decline in nominal GDP, which brought down tax revenues, and a dire need for higher spending to support the economy.
Hence, the FY21 saw a sharp overshoot of 9.5%. For FY22, the set target is 6% which is the highest since 1994.
Development banks are specialized financial institutions. They provide medium and long-term finance to the industrial and agricultural sector. They do term lending, investment in securities and other activities. They even promote saving and investment habit in the public.
The Narasingham committees aid to perform only the promotional and refinancing role. Specialized development financial institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership of the Reserve Bank, were set up to meet the long-term financing requirements of industry and agriculture.
The objective of development banks in the growth of the economy are:
The persons who have the capability of starting a business but does not have requisite help approach to financial institutions for help. These institutions help a large number of persons for taking up some industrial activity.
The promotional role of development banks is helpful in increasing the development of a country. They create a new class of entrepreneurs and help the weaker sections of society to be a part of industrial culture. With a view for a long term benefit to social development, banks have new capital schemes which provide financial assistance to the novice entrepreneurs. They help in covering the expense and manpower resources for undertaking the exercise of starting a new unit.
The development bank encourages rustic and provincial development. They give money to beginning organizations in reverse zones. Likewise, they help organizations which are in the venture in less-developed regions.
Financial institutions have helped both direct and indirect employment generation. They have employed many people in their offices. These institutions help in creating employment by financing new and existing industrial units.
The setting up of more industrial units will generate direct and indirect employment, make available goods and services in the country and help in increasing the standard of living. Financial institutions provide requisite financial, managerial, technical help for setting up new units.
Development banks provide funding for the development of the housing sector. It refinances banks and financial institutions which provide credit to the housing sector. It promotes and develops housing and financial institutions.
It organizes the working of all monetary establishments that give credit to farming and rural development. Development banks like the National Bank for Agriculture and Rural Development (NABARD) which give credit to the agriculture and furthermore for country advancement exercises.
It gives Overseas Buyers Credit to purchase Indian capital merchandise. Likewise, urges abroad banks to give account to the purchasers in their nation to purchase capital products from India.
Development banks help to resuscitate (fix) wiped out units. It encourages modernization, rebuilding, and broadening of wiped out units by giving credit and different administrations. The public authority of India (GOI) began the Industrial Investment Bank of India (IIBI) to help wipe out units. IIBI is the principal credit and recreation foundation for a restoration of wiped out units.
The development bank helps in the growth of capital markets. They invest in equity shares and debentures and mutual funds of several companies listed in India.
Industrial Finance Corporation of India (IFCI): this is for providing medium and long-term credit for the needs of industrial units.
Industrial Credit and Investment Corporation of India (ICICI): it promotes private industry concerns in the country and was set up as a private sector development bank.
Industrial Development Bank of India (IDBI): the IDBI’s it organizes the activities of other development banks and term-financing institutions
Industrial Reconstruction Bank of India (IRBI)’: it provides financial assistance as well as to revive and revitalize sick industrial units in both of the sectors.
Small Industries Development Bank of India (SIDBI): With a view to ensuring a larger flow of financial and non-financial assistance to the small-scale sector.
State-Level Industrial Development Banks:(SFCs and SIDCs): there is a combination of financing agencies and industrial development banks, focusing on backward regions for the development of medium and small-scale industries in respective states.
A Mini Ratna (Category-I) Public Sector Enterprise – RailTel is an information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in India. The company was incorporated on 26 September 2000 with the aim of modernizing the existing telecom system for train control, operation, and safety and to generate additional revenues by creating nationwide broadband and multimedia network by laying optical fibre cable by using the right of way along railway tracks. As of 30 June 2020, its optic fibre network covering over 55,000 route kilometres and 5,677 railway stations across towns and cities in India.
Railtel provides telecom solutions and has an exclusive right to install optical fibre cables along the railway tracks. Currently, the optic fibre network set up by the company covers as many as 5848 railway stations in India. RailTel is one of the largest neutral telecom infrastructure providers in India. As of June 30, 2020, the company had the exclusive right of way along 67,415 route kilometres connecting 7,321 railway stations for laying optical fibre cable.
The company has over 55,000 route kilometres of optical fibre cable network and have connected 5,677 railway stations across towns and cities in India as of June 30, 2020. RailTel is also an implementing partner for the Bharat Net project to create optical fibre cable-based broadband infrastructure in laying optical fibre cable across 36,000-gram panchayats in India.
RailTel serves as a key network for the Indian Railways and provides a variety of services to the Indian Railways. The company is also working with the Indian Railways to transform railway stations into digital hubs by providing public Wi-Fi at railway stations across India. Company is currently in the process of bidding for the project in Africa that include supply, delivery, installation, testing and commissioning of goods and service for digital literacy in public primary schools in Kenya.
The company operates data centres in Gurugram, Haryana and Secunderabad, Telangana to host and collocate critical applications for customers including the Indian Railways. In addition, it undertakes various ICT projects for the Indian Railways, central government, and state governments, including various train control system projects for Indian Railways.
The IPO proceed will be utilized towards the following purposes:
Subscription Dates16 – 18 February 2021Price Band₹93 to ₹94 Per ShareFresh issueNilOffer For Sale87,153,369 sharesTotal IPO size₹810-₹819 CroresMinimum bid (lot size)155 Shares and in multiples thereofFace Value INR10 per shareRetail Allocation35%Listing OnNSE, BSE
RailTel’s financial performance (in INR crore)FY2018 FY2019 FY2020 Revenue1,021.21, 038.31, 166.0 Expenses 835.18 20.69 31.9 Net income 134.01 35.4141.1 Net margin (%)13.113.012.1
Eyeing the growth in railway tracks and their monopoly in the market it is expected that Railtel is expected to do much better in the near future. The company is debt-free and has a CAGR growth of 7.47 from FY18 to FY20 revenue. However, the margins of the company are decreasing YoY. If the company can manage the margin then we may expect the company to perform much better in the near future.
In FY18 the net income was INR 134 cr while in FY20 the net income was INR 141.1 cr which grew marginally at a CAGR of 1.74%. The company has high cash and bank balance of around 368 cr. The company has a consistent track record of paying dividends. At an upper price band of INR 94 with an EPS of INR 4.40, the PE ratio stands at 21 and PB stands at 2.2. The valuation of the company looks very attractive at the current levels. Thus, We assign a “Subscribe” rating for the Railtel IPO.
It refers to a means of transfer of ownership or management, and control of public sector enterprises to the private sector. Privatization creates jobs and builds healthy competition in the market for the economy.it works for profit enhancement by improving customer services, and goods standards. India adopted Privatization as it was a part of the New Economic Policy or the LPG reforms.
Privatizations are instigated through various levels and phases and is considered profitable for the growth & development of a country, as it brings more efficiency and objectivity to business.
The stock of the previously publicly-owned company can no longer be traded in the stock market, and the general public is also banned from even holding a stake in such a company. Once privatization is completed, the company gives up the name 'limited' and starts using 'private limited' in its name. The main aim of Privatization is:
In the view for privatization, it is believed that the private sector and the regulation of free-market forces are a better incentive for businesses as they can be run efficiently and also achieve advancements in the field of economic welfare.
In the view against Privatization, it is considered to be an important supply-side policy that is designed in order to drive competition and improve productive and dynamic efficiency.it is also seen as a way of reducing the, share ownership and increase in investment, as privatized businesses were now free to raise finance through the stock market.
Some of the important concepts pertaining to privatization in India are discussed below:
Delegation is the process by which the government delegates responsibilities to a private sector company via lease, franchise, contract, or grant. During this process, the government retains ownership and responsibility, but the private company handles all the daily activities; hence plays an instrumental role in delivering the end product or service. The state, however, remains an active participant in the entire process.
Divestment is defined as the process of selling subsidiary assets, investments, or divisions of a company in order to maximize the value of the parent company. Companies can look for a divestment strategy in order to satisfy other strategic business, financial, social, or political goals. However, it still retains some ownership and remains a minority stakeholder in the company in order to remain a participant in the decision-making process.
The process of displacement begins with certain deregulations. These deregulations will allow private companies to enter into a sector that was controlled and regulated only by the government. Once the private companies compete with the public-owned enterprises, then slowly and gradually, the public enterprises get displaced from that sector.
Disinvestment refers to selling off certain as mostly a manufacturing plant, or product line. It Refers to the liquidation of a state-owned asset or a company and the process by which the Union government sells its stakes in a Public Sector Undertaking either fully or partially and the other way is they list it on the stock market.
Now, let us take a look at some of the advantages and benefits of undertaking privatization:
Privatization is the process by which a piece of property or business from being owned by the government goes to being privately owned. Basic services, such as education, shouldn’t be subject to market forces. It will also help governments to save money and hence increases efficiency, whereas private companies can move goods in a much quicker way and more efficiently.
We’re going to run through how to analyze an annual report.
Well according to Wikipedia an annual report is an extensive report on the company’s exercises all throughout the former year. Yearly reports are planned to create investors and other individual’s data and about the company's exercises and its financial performance.
Let’s look on to some important contents of the annual report:
1. Vision and Mission: Both the vision and mission statements play a very important role within the organization. The mission statement provides the organization with a transparent and effective guide for creating decisions, while the vision statement ensures that each of the choice made is properly aligned with what the organization hopes to attain in future.
2. The information about the company: once you open the yearly report there is company's profile, the name of the company, the board of directors of the company, what percentage are the director, chiefs directors, promoter directors, and what number are independent directors then who are the auditors of this company, who are the company secretary of this company, who are the bankers of this company, who are the registrar and agency of this company and all sort of detail you get here.
3. Product overview: Here we can get details of items being made by an organization, fragment insightful execution in the most recent two years, key raw materials consumed, etc.
4. Director and the management: The director job is to address and serve the interests of investors by managing and accessing the Organization's methodology, and performance of its policies. The Administration Board are mindful of the choices and activities across Company's brands.
5. Annual general meeting: It is the Social occasion of the directors and of each consolidated firm, legally necessary to be held each schedule year.
6. Management report: The executive’s statements contain just numbers that are their greatest shortcoming. The administration conversation will give you data about what the organization has been doing, and may likewise give more data behind a portion of the numbers in the financial information. Any new organizations, ventures, effects of administrative or serious environment, and so on will be referenced.
7. Report on corporate governance: Key things to look at here are organization's governing body, sub-boards and attendance records of directors during gatherings, related compensation which is paid to directors with benefits procured by the organization. Investigate whether the profile of independent directors coordinates with the necessity of the organization according to the area of an organization.
8 . Information on shares of the company: This part gives data on recorded execution of offer value, Shareholding Pattern of the organization, pledging of shares by promoters during the year, split of shares, Bonus shares distributed, etc. and so forth.
9. Auditors report: an auditor's report gives an assessment of the legitimacy and unwavering quality of an organization or association's financial statements. The objective of an auditor's report is eventually to record sensible affirmation that an organization's financial summaries are liberated from the material mistake. This segment gives data on remarks by auditors on the financials of the organization. You look out for who are auditors for the company and any qualifications by the auditors on internal processes. The data on the change in accounting strategy if any will be featured in this segment.
10. CAG report: they show the findings of the transaction audit and performance audit.
11. Financial statements: there are three financial statements specifically, the profit and loss statement, balance sheet, and cash flow. Financial Highlights contains the superior view on how the organization's financials look for the year passed by. . The data in this part can be presented as a table or a graphical showcase of information. This part of the yearly report usually makes a multi-year examination of the working and business measurements.
12. Balance sheet the corporate balance sheet is the yearly report and a significant manual for settling on sound speculation choices. The balance sheet presents a synopsis of what the organization was worth on the most recent day of the financial year, and you will locate the previous year's figure for comparison.
13. Footnotes and schedules are to be taken for a superior comprehension of the financial reports one must be able to recognize the signs that the company is providing regarding any disaster or growth ahead it is essential to scrutinize the annual report for the information before making any investment decisions.
Stock Screener for Indian Stocks. Click on this site: screener.in
Enter the company name. Next page below u will get access to the annual report
Writing research reports is a creative process. Creativity is the sense of how an analyst structures the report and communicates the message. What he does is take in a lot of financial information and give out an understandable version of what that financial information means. The process of converting numbers to views does demand certain qualities.
Research analysts make a difference by how they present their views, conclusions, and recommendations. The communication aspect of an analyst's job is as important as analysis, of which writing a research report is one.
Just like writing projects, compiling research reports also has three important steps - Planning, Drafting, and Editing.
The writing process has to be planned as to how each section will be approached and assign a deadline for each. As there are many reports to be written and the workload shall be high near the quarterly results season, it is important to maintain high levels of discipline otherwise the delay can affect the work. Once done with the planning, work should begin on each section.
Generally, each organization has a template of its own, and therefore working on a predefined structure makes the work a little bit easier. Almost all the sections of a research report are fact-based and therefore filling them is more of a copy-paste function but certain important sections require an understanding of the business and thorough communication with management.
Investing in potential foreign stocks such as Apple, Google, and Facebook seems to be a bit complicated, doesn't it?
We have all grown up using the services provided by these companies. Needless to say, these companies are well known as global leaders in their respective business which will produce many benefits in the future. Aside from using their services, many of us often think of buying these stocks at a reasonable rate.
Despite knowing the fact that these stocks are not listed on Indian stock exchange, Indian retail investors now can invest these stocks without a flick of a switch. As the sudden demand of US stock increases among Indian retail investors, several platforms such as Swastika Investmart have allowed Indian investors to invest directly in the US stock market.
The popular US stocks Facebook, Apple, Amazon, Netflix, and Google are known as FAANG stocks and we all know that these 5 companies play an active role in your life. The term FAANG was first coined by JIM Cramer, host of “Mad Money” in 2012.
As an investor, you may know that India’s share of world GDP is nearly 7%, which means 93% of the world’s GDP remains unused. Today, we have an opportunity to invest in the shares across the economy, which means diversification across economies. Earlier, we used to 100% of our portfolio in Indian stocks and bonds. True diversification means diversification across countries.
To invest in US stocks, you are required to open a Demat account with a brokerage company that offers a cross-border trading facility.
I). Open a Demat account with a brokerage firm that has tied up with international partners that offer overseas trading facilities.
II) Submit yours Know Your Customer (KYC) form along with a separate account opening form.
III) To successfully trade in the foreign stock market, you are required to transfer the amount to the international partner of your domestic broker.
IV) Funds are transferred to the international partner as below:
Once the funds are successfully transferred to international broking partners, you can start buying and selling of foreign stocks online.
Financial planning covers all areas of the client's financial needs and will result in the achievement of each of its objectives. A financial advisor effectively manages its finance with its short and long-term outlook towards it.
With the analysis of objective and advisor make sure about the desire of the client there perspective and objectives of investments. A salaried individual always wishes to have a secure retirement which cannot be done without proper planning and which also requires correct execution of it. A financial advisor is a person who observes the risk capacity and after understanding that he delivers as per the requirements.
An adviser assesses the financial position of the person by bringing up together its income & expenses, his source of income, stability, and growth determine how he may be able to manage current household expenses. His income should be apportioned to expenses and saving for the future.
His income should be allocated in such a manner that it should meet the household aspirations and would lead to a secure lifestyle saving and live comfortably. If expenses are higher then income, his future earning will get affected as to meet the current requirements he needs to borrow funds which seems an easy way to full fill current desires.
This repayment of the borrowing over a period in the future reduces a part of the future income and apportions it to funding the asset that has been bought with a loan. Financial advisers collect information about the household's finances and analyze them in various ways to draw various inferences about their financial position.
Financial advisers help households plan their liabilities efficiently. Evaluating which assets or expenses can be funded by borrowings is a function adviser can perform.
They can advise households about how to finance their assets, how much to borrow, how to provide for repayment, how to ensure that credit scores are not unfavorably impacted. Advisers help households to deal with their borrowings taking into account their need and ability to repay debt.
Insurance is a risk transfer mechanism where a small premium payment can result in payments from the insurance company to tide over risks from unexpected events. The temporary loss of income from disabilities and permanent loss of income from death can be covered with life insurance products.
Health and accident insurance covers help in dealing with unexpected events that can impair the income of a household while increasing its expenses on health care and recuperation. General insurance can provide covers for loss and damage to property and other valuables from fire, theft, and such events. Insurance planning involves estimating the losses to the household from unexpected events and choosing the right products and amounts to cover such losses.
A crucial component in financial planning and advisory is the funding of the financial goals of a household. Investment planning involves estimating the ability of the household to save and choosing the right assets in which such saving should be invested.
Investment planning considers the purpose or financial goals for which money is being put aside. The focus is on how much money is invested in which particular asset class to deliver the expected return within the risk preference of the investor.
A financial advisor should be able to assess the impact of taxes on the finances of the household and advice appropriate saving and investment options. The post-tax return of financial products will have to be considered while choosing products and estimating holding periods.
The Taxability of various heads of income such as dividends, rents, and interest differ. The treatment of return if accumulated, rather than paid out periodically, varies. The taxability of gains differs based on the holding period. A financial adviser should bring in these aspects while constructing a plan for an individual.
कच्चे माल और गैसोलीन के अमेरिकी भंडार में गिरावट के कारण कच्चे तेल के भाव मे तेज़ी आई है। साथ ही, ब्रेक्सिट सौदे के संकेत ने निवेशकों की जोखिम की क्षमता बढ़ा दी है। क्रूड और ईंधन के साथ-साथ संभावित ब्रेक्सिट सौदे के कारण डॉलर मे दबाव बना रहा, जिससे कच्चे तेल के भाव को सपोर्ट मिला है।
डॉलर मे गिरावट अन्य मुद्राओं के धारकों के लिए ग्रीनबैक की कीमत को अधिक किफायती बनाता है। लेकिन, कोरोनोवायरस के एक नए संस्करण पर चिंता का विषय है और छुट्टी के मोड में निवेशकों के साथ तेल बाजार शांत भी है।
ऊर्जा सूचना प्रशासन (ईआईए) ने बुधवार को कहा कि कच्चे तेल की सूची सप्ताह में 562,000 बैरल घटकर 4995 लाख बैरल तक गिर गई है। ईआईए ने कहा कि गैसोलीन के स्टॉक में 10.1 लाख बैरल की गिरावट आई, जबकि डिस्टिलेट स्टॉकपाइल्स 23 लाख बैरल से अधिक तक गिर गए है।
तेल की कीमतों ने उन खबरों से भी समर्थन हासिल किया, जो ब्रिटेन और यूरोपीय संघ के एक संकीर्ण व्यापार समझौते को तोड़ने के लिए थे। वैश्विक शेयर बाजार में एक पलटाव के कारण निवेशकों के बीच जोखिम की क्षमता में भी सुधार हुआ है, जिससे लगता है कि कोरोनोवायरस के एक नए संस्करण पर डर थोड़ा कम हुआ है।
कुछ निवेशक तेल की मांग सुधरने के बारे में असमर्थ है, क्योकि अमेरिकियों को फिर से चेतावनी दी गई है कि वे क्रिसमस के लिए यात्रा न करें क्योंकि अस्पतालों में मरीज बढ़ सकते है।
आपूर्ति पक्ष पर, इस सप्ताह अमेरिकी ऊर्जा फर्मों ने लगातार पाँचवें सप्ताह तेल और प्राकृतिक गैस रिसाव मे वृद्धि दर्ज की है। तेल और गैस रिग काउंट, भविष्य के आउटपुट का एक प्रारंभिक संकेतक है और बेकर ह्यूजेस के मुताबिक, सप्ताह में तेल रिग काउंट 2 से बढ़कर 348 तक पहुंच गया है।
घरेलु वायदा कच्चे तेल के भाव इस सप्ताह सीमित दायरे मे रह सकते है। इसमें 3330 रुपय के निचले स्तरों पर सपोर्ट है तथा 3700 रुपए पर प्रतिरोध है।
"If we want our regulators to do better, we have to embrace a simple idea: regulation isn't an obstacle to thriving free markets; it's a vital part of them." ~ James Surowiecki
To control the smooth functioning of any department there should be one controller who will look after its performance. They prepare the rule which needs to be followed and make necessary amendments when they see any loophole in it. It is necessary to regulate the capital market to make it's functioning smooth and hassle-free, a major reason for capital market regulation is to make it's functioning more fair and transparent.
Ministry of Finance: This is the topmost office in the country as far as financial matters in the country are concerned and overlooks all the Financial Participants in the Country.
Following are the major law under this segment which regulates the Indian Capital Market.
Securities Exchange Board of India: Securities and Exchange Board of India is the main head of the Financial Markets and the main regulator in the Capital Markets. It performs various functions to maintain the smooth flow of financial markets.
AMFI: Association of Mutual Funds India an authorized regulatory body headed by Mr C.V.R Rajendran, regulates the whole mutual fund industry in India, It regulates licenses work for the betterment of the industry and aims to develop the mutual fund market in India.
Predicting a stock market trend is not an easy task; some say, the stock market runs on investors’ sentiments while some traders deny the fact. However, this is not the case. Of course, investors’ sentiments affect the stock market to a greater extent but some economic factors play a crucial role in identifying the prediction of the stock market.
To begin with, economic news may heavily impact the stock market as the economy goes up, and so too grows the stock’s profitability. Top companies whose shares are currently trending at the top in the stock market mostly rely on a strong economic environment. As the economy grows, many investors look forward to buying products and services, which in turn increases stock prices.
On the contrary, when the economy struggles, people start to avoid spending on products that may heavily impact a company’s stock and as a result, the stock market experiences a strong decline.
Fundamental analysis of stocks helps investors to identify the real worth of stock, technical analysis, on the other hand, provides a detailed insight into stock and tries to capture the market’s psychology.
Some of the economic factors are inflation, the country's GDP, unemployment, retail sales and more. The majority of these factors affect the stock's performance. If investors are completely aware of these factors, they can upgrade their portfolio to minimize their losses.
Let’s look at the economic factors that directly influence stock market growth:
This is one of the biggest economic factors which directly impacts the country’s economy. Gross domestic product is the final value of goods and services produced in a country during a specific period of time. It tells the overall economic performance of a country. Usually, GDP is calculated on an annual basis while sometimes it is measured quarterly.
In many countries such as the US, the government yearly releases GDP reports along with the annualized GDP for each fiscal quarter. In simple terms, GDP is a measure of economic growth which tells the overall health of the country.
If the GDP of any country performs well, investors buy shares hoping that the stocks will provide them outstanding returns. However, if the GDP is contracting, the profitability of the companies tend to decrease as the investors start to avoid purchasing stocks which in turn cause a significant drop in the stock market.
The upliftment of GDP encourages investors to purchase more stocks as they are optimistic about the earnings of the stock market.
Wages gives a clear report on the economy. For instance, consumer spending automatically drops whenever the unemployment rate is high. As the funds are limited, people show less interest in buying; they spend less amount on secondary items and allocate funds only to needy items.
This may reduce the earning capacity of the companies which highly affects the stock market prices.
Conversely, if the employment rates are rising and vice versa, then the market condition forces investors to buy more stocks which makes a positive impact on the stock market.
GDP and inflation are the two factors that affect the stock market as it impacts overall consumer spending. Inflation, in general terms, is defined as the rising price of goods and services within a particular economy. It means the price of goods and services is continuously rising which decreases the purchasing power of consumers.
Rising costs may heavily impact business and their profits as no investors are ready to purchase the stocks of these companies which suffer businesses a lot. Hence, when the inflation rate rises, the stock market falls very badly.
Rising inflation makes investors hedge their portfolio as rising inflation increases the volatility of the stock market.
Needless to say, high-interest rates negatively affect the stock market as rising interest rates limit the borrowing capital for the businesses which in turn hamper the growth of the business. This can heavily impact business growth, potential earnings and stock prices.
Rising interest rates also form a great impact on consumers. This is because rising interest rates affect the mortgage interest payments which decrease the purchasing power of the consumers.
Exchange rates are also an important factor that influences the US stock market. A weak exchange rate signifies cheaper export rates internationally. This is good for those companies who regularly export goods and services. A high exchange rate is directly related to cheaper imports, hence it is apt for companies who use imported goods such as manufacturing goods.
Understanding the macroeconomic indicators and setting your portfolio according to them is the hallmark of any investor. It is seen that many investors get easily influenced by so-called analytical reports without going through it. For a successful investor, it is important to invest some time in understanding the microeconomic factors of a country before investing.
The lure of making easy money always draws investor’s attention towards stock market trading. However, the process of stock trading is not as easy as it seems to be. For successful stock trading, investors are required to have a sound understanding of the market. Knowing fundamental analysis and technical analysis should be on their priority lists as it enables them to make a potential return in minimum time. If not, then instead of generating any profit, investors are most likely to suffer huge losses in the stock market.
As the stock market giant Warren Buffet said; the money in the stock market is not built in a day. Preparing a strong portfolio maybe even tougher. It requires a lot of patience, adherence to make successful money in the stock market. He further said an investor needs to give some time to his stocks to get compounded over the years. The wealth of an investor is built over the years and so is the world-class company. For a successful investor, it is required to develop the appetite to digest the short term losses. Firstly investors need to identify the quality stocks which can provide them with long term gains. Secondly, do the fundamental analysis and technical analysis of a stock as it gives them a clear idea about the past performance of a stock. Plus the investors will also get to know the future trend of a stock according to market predictions.
According to Philip Fisher, author of Common Stocks and Uncommon Profits once said, the stock market is filled with the investors who only run behind the price rather than the value of a stock. For a smart investor, it would be feasible if he chases the value of a stock as it enables them to identify the prospectus of the company, sustainability of its products/services, and the ability to generate capital to meet the future demands. The growth of a stock depends on its potential earnings and the company’s ability to execute it.
A smart investor is the one who has the potential to think and invest in the future. Mature markets with vested features eventually phase out and are often replaced by high-quality products with upgraded features. Nokia, who once was the market leader of the mobile phone company couldn't hold the smartphone wave and ultimately lost out to the top upgraded companies such as Apple, Samsung and Sony Ericsson.
It is extremely important to predict the stock market price before entering the market. With time to market, investors can lose their hard earning money in no time. Many experienced investors give advice not to time the market as no one has done with success. This is because no one can accurately tell the top and bottom prices of any stock.
If you look at the history of the stock market, you will get to know that even the best bulls in the stock market had given a bundle of panic movements to investors. Due to unpredictable market trends and volatility, many investors had lost the money even if the market experienced a bullish trend. However, all the investors who had maintained their disciplined approach during the market ups and downs, have generated greater returns. If you are looking for long term stock market returns, it would be ideal to have a systematic approach for investing.
Planning before investing is extremely important as it enables investors to get a clear insight into stocks such as which stocks are worth buying and which are not. After the successful accomplishment of a plan, one must analyze the structure of the stock market along with the company, an investor wants to trade-in. Analyzing the stock market includes studying the stock market in-depth, technical analysis of a stock and time to buy or sell a stock in the market. Once an investor goes through all the aspects of the market, they are ready to start trading in the stock market.
It is always said that the first loss is the smallest loss in the stock market. Many investors continuously invested in the companies which are making a loss hoping that someday the same company will provide them outstanding returns. This is not a winning strategy. No matter if you are a trader or investor, he must be able to take fast decisions when continuous losses are identified. Such errors are made by experienced traders also. Therefore, it is better to understand the losses rather than understanding the profits, as losses will help you to understand the market more clearly.
Investing in the stock market may provide you with potential returns if done carefully. Entering into the stock market without having proper planning may always incur a great loss to the investors. Therefore it is ideal to make your homework first before stepping into the stock market. If you are a newbie or a professional who is trying to retrieve attractive returns from the stock market then Swastika acts as a one-stop solution for you.Try Swastika Investmart to manage your wealth profile. Click here to open a Demat account or feel free to contact us.
"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." A statement said by Sir Warren Buffet. An ace investor of the stock market.
Yes, it's very important to follow all the discipline approach when you are planning to do investment in equities, which actually helps you to create a proper portfolio.
But what a trader can do, Yes a trader a person who may trade daily on Intraday, reading charts understanding market trends, constantly watching new and many other things he does, before taking any trade.
Being a trader is only just to do buying & selling of shares an individual should understand the reason behind it. The market actually runs on two trends, i.e. Bullish & Bearish so while doing day trading one should under some basic stock market trading strategies which will help them to perform well in the market.
It is the technique used by the trader when the market is in a bearish trend, here traders first sell the stocks which are not owned by them in anticipation of a fall in price. Buying the stock on the same day is mandatory else it will lead to an auction market with some penalty.
Here Trading done by the trader is like buying a product in one exchange or segment & selling the same product in another exchange or segment to generate riskless profit considering the cost of the transaction.
A trading strategy used by the where he buys or sells stock at a minor difference & make money due to the high volume.
Many traders use this strategy where they enter into the stock with a very short period of a few days or for a few weeks.
In this, a trader buys the stock when they have an ongoing momentum, and close the position once the momentum ends.
These are a few basic strategies a trader or any novice can use just to make his/her trading more efficient & effective.
After reaching new heights, the stock market appears to be high now. As NIFTY continues to maintain a large pace and maintain a large profit, experienced investors recommended going for an approach that provides more profits at the current level than chasing the rally as long as the index is below the 12,960 to 13000 zone.
Here, we have picked some of the greatest collections of stocks that can generate solid returns in a long run.
The stock made a double bottom formation in the daily chart by taking the support of ₹770. Many investors might experience fresh upward moves in the upcoming days. Also, an RSI indicator shows great strength. As the whole chart seems to be good, the analyst suggested investors and traders buy and accumulate this stock for a target of ₹900 while they also advised maintaining a stop loss at ₹740.
Bata experienced a large breaking out of the range ₹1465, on the back of the above volumes. Also, the technical indicators are showing positive signals as the trade above the 20-day and 50-day SMA. Analysts also said that the RSI indicator of Bata India is in rising mode and cannot be overbought. As the technical indicator seems to be looking positive on the monthly, weekly chart, experts said that the stocks of Bata India move higher in the upcoming weeks.
Bharti Airtel found the support of nearly ₹394 level in Oct 2020. Such types of levels were previously seen in March 2020 and needless to say, traders say it is a strong support point. The stock then reached a new height and made a new higher top. A 14 days RSI indicator also gives positive signals as they are in rising mode and cannot be overbought. Also, the technical setup of the stocks looks good which makes experts give a positive recommendation about Bharti Airtel.
Trade analyst suggests purchasing a stock between ₹478-485 for a target price of ₹515. However, they also advised planning a stop loss at ₹470.
The stock experienced a strong upward trend after testing 100-day simple moving average (SMA). As the stocks are able to manage its sustainability above ₹1021 level, the trajectory shall remain in an upward direction. Therefore the experts suggest to buy stocks now and book a target price of ₹1,170. Stop loss is suggested at ₹1,020.
HDFC has marked a great uptrend in The November month as the stock has raised from the levels of ₹585 to ₹676. It has also been noticed that the stock has been sustained above the key levels which were under the stiff resistance for the last two years. Therefore, HDFC has experienced a classic bullish pattern breakout. Also, the counter fits into all the technical parameters and hence the analyst marks a strong outperformance in this counter.
Needless to say, experts recommend buying this stock for a target of ₹750 over the next 14 sessions. However, the stop loss is recommended by them at ₹635.
Dixon Technologies shares experience remarkable growth as the shares of the company hit a fresh week high of Rs 12,538.7 on the BSE against a point of 275 in the rally of S&P BSE Sensex. Atul Lall, MD and vice-chairman of Dixon technologies have a strong expectation from the new year 2021. According to him, the stock of the company will have a Capex of Rs 125-150 crore in 2021.
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